AB 62

This bill imposes disclosure requirements related to prescription drug costs on

drug manufacturers and health insurers.

First, the bill requires that a manufacturer of a prescription drug whose

wholesale acquisition cost exceeds $40 notify certain purchasers of the drug,

including the state, health insurers, and pharmacy benefit managers doing business

in Wisconsin, when the cost for a course of therapy increases by more than 16 percent.

The notice must be provided at least 60 days prior to the increase to the purchasers

who have registered with the Office of the Commissioner of Insurance to receive

notification. In addition to notifying the purchasers, the manufacturer must provide

OCI with specified information about the increase, including the financial and

nonfinancial factors used to make the decision to increase the drug's cost. Under the

bill, a drug manufacturer must also notify OCI if the manufacturer releases a new

drug whose wholesale acquisition cost exceeds the specialty drug tier threshold

under the Medicare Part D program, which is currently $670 for a one-month supply.

The bill directs OCI to publish the information it receives from manufacturers about

cost increases and high-cost new drugs on its website. A manufacturer who fails to

report information to OCI may be liable for a penalty of $1,000 for each day of the

failure.

Second, the bill requires that an insurer issuing health insurance coverage in

this state annually file a report with OCI that identifies which of the plan's covered

drugs have the highest prescription rates and costs and, for large group plans,

provides information about the relationship between prescription drug costs and

premium rates. The bill directs OCI to use this information to annually compile a

report that analyzes the overall impact in this state of drug costs on health care

premiums. The report must be distributed to the legislature and published on OCI's

website.